In recent discussions held in Sri Lanka, Desiccated Coconut Millers’ Association Chairman Neomal Perera, who is also involved in exporting coconuts, expressed concerns about the state of the country’s coconut industry.
With the demand for coconuts surging both domestically and internationally, Sri Lanka is facing production challenges and issues with exports to major markets like the US and the European Union (EU). Additionally, the shortage of coconuts has become a pressing issue, leading to a need for greater cooperation and research to bolster the industry’s growth.
Lack of coconuts and export challenges
According to Perera, the primary concern for the coconut industry is the scarcity of coconuts in the country.
The Coconut Research Institute (CRI) and the Coconut Cultivation Board had initially provided inaccurate information on coconut crops, leading to unrealistic expectations from foreign buyers. As a result, Sri Lanka’s coconut industry is grappling with the repercussions of inadequate supply, impacting exports and domestic consumption.
“The lack of coconuts is the main issue and there is an issue with the research, as well as exports to the US and the EU. Production issues pertain to the high price of energy as well as the high cost of diesel and other fuel. The CRI and the Coconut Cultivation Board have given wrong information at the beginning of the year to the Central Bank, saying there is a crop of around 3.3 billion coconuts, when there is only a crop of 2.6-2.7 billion.
“When you give such figures to a Government institution, foreign buyers buy accordingly, expecting the prices to come down. Coconut is a crop that we can sell abroad throughout the year as coconut milk, desiccated coconut, coconut flour, and coconut oil. This year the industry suffered because we were unable to get a proper price from overseas buyers.”
Inefficiency in addressing whitefly disease
Another critical issue that the industry faces is the whitefly disease, which has been spreading among coconut palms. Despite attempts to combat the disease, there have been challenges in allocating funds efficiently for the use of neem oil and soap powder, which are used to control it.
“On the matter of the whitefly disease, the Government has dropped the ball by paying labourers high salaries with the small amount that has been allocated. We asked them to use the Civil Defence Force and existing labourers instead of engaging additional labour and to use the funds for chemicals such as neem oil and soap powder to combat the whitefly disease.
“Instead, the Government exhausted the funds on the additional labour and was even unable to cover the area it was meant to. There is another disease spreading on a large scale in Hikkaduwa in the south. The CRI is short of staff because they take sabbatical leave or go abroad on research and don’t return. Since there is a staff shortage, we are not given adequate support to address these diseases. We are not given the information on how to fight these diseases. These diseases do not originate in Sri Lanka; they come from India,” Perera said.
The CRI’s inability to provide adequate information and support to growers has further hindered effective disease management. To tackle such problems, experts emphasise the importance of seeking assistance from research centres in India and other countries with relevant expertise.
“The easiest method is to use the connections with the research centres in India and request for assistance by sharing information. However, the CRI is reluctant to obtain information in this manner; instead, it wastes money on research even though it lacks research officers to continue the work. Then it only offers excuses. For instance, the year before the last, the reason was Covid, then last year it was the crisis. The CRI simply does a postmortem report instead of giving adequate information to growers.
“The assistance from the research institute is insufficient. The information that is available is from 50 years ago; there’s nothing about the new diseases and conditions that are affecting the yields,” Perera lamented.
Production challenges and high-yielding seedlings
Coconut production faces hurdles due to the scarcity of fertilisers and the impact of the whitefly disease. The ban on chemical fertilisers, a Government initiative aimed at environmental conservation, has negatively affected coconut cultivation.
Additionally, the lack of high-yielding seedlings has hindered the industry’s growth and productivity. The Government’s proposal to establish a second coconut triangle in the Northern Province may present new opportunities, but adequate support and resources are crucial for its success.
“The main issue is the shortage of coconuts. The two main issues faced in production are the lack of fertiliser and the whitefly disease. We need 13 months for the coconut fruit to mature from pollination, unlike other crops such as tea where only a month or so is needed. As such, the actual fallout of Gotabaya Rajapaksa’s ban on chemical fertiliser is only being felt this year and thus coconut production has taken a significant blow,” said Perera.
Global markets and export opportunities
Despite challenges, Sri Lanka’s coconut industry enjoys advantages in global markets, including the EU and the Middle East. With the Generalised Scheme of Preferences Plus (GSP+) granted to Sri Lanka, the country can compete more effectively in the European market. However, Perera said the industry was yet to explore the full export potential of Chinese and Russian markets, which could be tapped with tax concessions similar to those given to competitor countries.
“The GSP+ has given us an advantage to compete in the European market. We already have the US market. The reason why the entirety of our production doesn’t go to the US is because US investors have already invested in the Philippines and are buying stocks from their own factories. We have the Middle East as well as the European markets. We don’t have enough going to the Chinese and Russian markets, where we have the freight advantage.
“The majority of containers returning from Europe, the Middle East, South America, and North America are going to Chinese and Russian areas and about 30-40% are taking empty containers. If we have the same tax concessions that China and Russia have given to other countries such as Thailand and Indonesia, we can be more competitive and that market will allow us to double the quantity we are currently exporting within a period of just two years.
“There isn’t a single trade agreement signed in the last 10 years that is to the benefit of the country. Sending freight to China is 75% cheaper than sending it to the West. When it comes to domestic consumption, Sri Lankans consume around two billion coconuts annually. My prediction is that there will only be 2.6 billion coconuts available for 2023, the lowest in history. This means that only 600 million will be available for export, whereas we had 1-1.5 billion available in previous years,” he noted.
Meanwhile, Minister of Agriculture Mahinda Amaraweera acknowledged the challenges faced by the coconut industry and assured continued support in combating whitefly disease. He said that the ministry aimed to work alongside industry stakeholders to find suitable solutions for these issues.
Researchers’ efforts to improve coconut varieties
Academics and researchers in Sri Lanka, such as University of Peradeniya Department of Crop Science Senior Professor Buddhi Marambe, have been working to develop new coconut varieties. Their efforts have led to the creation of relatively short crossbred coconut plants. However, challenges remain in the lengthy timeline required to develop and commercialise new coconut breeds.
“We have assisted with the whitefly disease. I don’t see a need to bring in pesticide from India to combat the disease. We will continue to assist the coconut industry where necessary,” he said.
Innovation in coconut cultivation
Recognising the need for innovative practices, Prof. Marambe highlighted the development of short coconut plant varieties as a promising step. These crossbred varieties have the potential to improve yields and increase sustainability in coconut cultivation. However, the availability of these new breeds in adequate quantities remains a challenge.
“We have produced a short coconut plant variety. There are crossbreds that we have produced but they are not as short as what you would find in other countries. However, they are not available in adequate quantities to be distributed among all growers.”
Nevertheless, Prof. Marambe emphasised that progress in the coconut industry, like any agricultural sector, took time. Developing new coconut varieties or crops requires long-term dedication and technological advancements. Sri Lanka’s coconut industry must adopt a forward-thinking approach and invest in research and development to secure a prosperous future.
“The issue also lies in how long it takes to develop new coconut varieties. For a rice variety to be created, it takes six to eight years. It is a 10-15-year long project for a spice crop to be born, while tea is a 25-year long project. Thanks to technology, the time to develop new tea varieties has been brought down to 18 years. When the seed of an idea is planted today, we will only see the end result 18 years later,” said Prof. Marambe.
The coconut industry in Sri Lanka is at a critical juncture, with the demand for coconuts surging globally. To meet this demand, it is essential to address production challenges, explore advanced farming techniques, and collaborate with experts from India and other countries. With concerted efforts from industry stakeholders, researchers, and policymakers, Sri Lanka can unlock the true potential of its coconut industry and solidify its position as a leading coconut exporter in the world.
The CRI has made significant strides in advancing coconut cultivation, introducing new high-yielding hybrids and implementing effective disease control measures.
Coconut Research Institute Director Dr. Sanathanie Ranasinghe, highlighting the institute’s groundbreaking efforts to revolutionise the coconut industry and boost coconut production in the country, said that the CRI had successfully developed several new coconut hybrids with the potential to significantly increase coconut yields.
To ensure the availability of these high-yielding hybrids, the CRI is ramping up seed production.
Addressing the whitefly disease, which has posed challenges to coconut cultivation, Dr. Ranasinghe revealed that the situation was now under control.